Regulatory Reform Minister, Paul Goldsmith, and Parliamentary Under-Secretary for Regulatory Reform, David Seymour, say changes to Regulatory Impact Analysis (RIA) requirements will lead to better informed decision making by Parliament and the Government.

“Our laws and regulations have a profound effect on our economic performance, the operation of business, and the well-being of every New Zealander,” says Mr Seymour.

“High quality policy advice is the foundation of robust government decision-making. Poor quality regulation unnecessarily increases the costs of doing business and reduces New Zealanders’ freedom.

“Although the quality of RIA from government departments has improved over time, it is still highly variable.”

The changes to the RIA requirements are designed to:

Increase the use of economic and cost-benefit analysis

Ensure that impact analysis is fit for purpose

Increase transparency of the impact analysis

Encourage earlier and broader engagement on proposals by agencies

“These improvements are in line with the findings of a newly released report by Castalia that was commissioned by the Treasury and will help ensure the government regulates in the right way, at the right time and only when necessary,” says Mr Seymour.

“The changes also reflect feedback from the business community suggesting costs of regulation are insufficiently considered.”

The changes to RIA requirements are a key part of the Government’s new Regulatory Management Strategy, also announced today.

“At the core of the regulatory management strategy is the government agencies’ role as regulatory stewards, and the expectation that they will actively monitor and maintain regulation to ensure it delivers the intended benefits,” says Mr Goldsmith.

“Rapid societal, market and technological changes are increasing the demand for more sophisticated and nimble regulatory solutions, strategies and regulators.

“While we have a well-established reputation for our fiscal management and reporting disciplines, the challenge is to build that same level of discipline around government regulation.

“Good regulation is an important driver of national competitiveness, productivity and living standards, which all contribute to the Government’s clear economic plan for building a faster-growing economy with more jobs and rising incomes to support New Zealanders and their families.”